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Pension and Isa planning

Yanling
Yanling Posts: 124 Forumite
100 Posts Third Anniversary
Hi, Thanks for you guys again, helping me pension plan.
I am going to invest Isa in April. I can only invest pension and Isa. I am trying to plan ahead before I invest sipp.
The question is that if i invest sipp with Cavendish at hsbc global strategy portfolio, should I invest isa with cavendish too? If yes, which portfolio could be better for me? Vanguard lifestrategy? Fundsmith equity fund? or?
Cheers !
«1

Comments

  • MallyGirl
    MallyGirl Posts: 7,326 Senior Ambassador
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    Why not choose the same HSBC fund in both if you are happy with it?
    I’m a Senior Forum Ambassador and I support the Forum Team on the Pensions, Annuities & Retirement Planning, Loans
    & Credit Cards boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com.
    All views are my own and not the official line of MoneySavingExpert.
  • Yanling
    Yanling Posts: 124 Forumite
    100 Posts Third Anniversary
    edited 11 February 2018 at 4:31PM
    MallyGirl wrote: »
    Why not choose the same HSBC fund in both if you are happy with it?
    Hi,
    will it reduce the cost( fund manage fee and annual management fees) if I invest in the same portfolio with my pension and Isa?
    https://www.cavendishonline.co.uk/investments/fund-research/
  • Linton
    Linton Posts: 18,343 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Hung up my suit!
    Yanling wrote: »
    Hi,
    will it reduce the cost( fund manage fee and annual management fees) if I invest in the same portfolio with my pension and Isa?
    https://www.cavendishonline.co.uk/investments/fund-research/

    No - Pensions and ISAs are different "people". And fund charges are based on a % of value. So it doesnt matter whether the funds are held in several small tranches or one large one.

    The advantage of having common funds across both ISAs and pensions is purely to minimise the effort required to manage them. If your ISAs and pensions are both intended for long term investment presumably a sensible portfolio for one would also meet the needs of the other.
  • Yanling
    Yanling Posts: 124 Forumite
    100 Posts Third Anniversary
    edited 11 February 2018 at 6:20PM
    Linton wrote: »
    No - Pensions and ISAs are different "people". And fund charges are based on a % of value. So it doesnt matter whether the funds are held in several small tranches or one large one.

    The advantage of having common funds across both ISAs and pensions is purely to minimise the effort required to manage them. If your ISAs and pensions are both intended for long term investment presumably a sensible portfolio for one would also meet the needs of the other.
    Hi, I thought it could reduce the risks if I choose not the same portfolio for person and Isa. Does that make sense?
    If yes, I am looking at Hsbc Global strategy balance portfolio Acc, VLS 60% Equity Acc, Fundsmith Equity Fund I Class Accumulation for person and isa, which means one of them will not be used.
    What would you think of Fundsmith Equity Fund I Class Accumulation ?
    Many thanks
  • Linton
    Linton Posts: 18,343 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Hung up my suit!
    If you are investing in broadly based fund like the HSBC or VLS ones there really isnt any risk that would seriously affect one and not the other. Other than marginal effects which ever one you chose wouldnt matter much.

    Fundsmith Equity is very different. It is equity (shares) only and deliberately invests in a relatively small number of mainly US and UK companies in a restricted range of industries that the fund manager particularly likes. Each constraint adds to the risk that some economic event could affect the fund particularly adversely. Plus you are completely dependent on the choices made by the manager. On the other hand it has performed well since it started. So I think it would be fair to categorise it as higher risk/higher return compared with the other two and certainly not an alternative.
  • Audaxer
    Audaxer Posts: 3,547 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper
    I don't think there is anything wrong with having both VLS60 and HSBC Global Strategy Balanced, especially if it is a large amount you are investing. Both have had similar returns since launched. VLS60 has a fixed allocation, more UK equity, more Treasury bonds than corporate bonds whereas HSBC GS Balanced had a lot less UK equity, more corporate bonds, some property and has an actively managed allocation. I don't think one is better than the other, so no harm to have both funds rather than all your eggs in the one basket.

    I don't see the point of also having Fundsmith which is 100% equity and fits more in a diversified single sector portfolio, whereas both the above are multi asset funds.
  • Yanling
    Yanling Posts: 124 Forumite
    100 Posts Third Anniversary
    Can I invest some Isa money to one portfolio and the rest of Isa money to another portfolio?
    I see fundsmith runs quite well, would like to take a little risk to it.
    Thanks
  • MallyGirl
    MallyGirl Posts: 7,326 Senior Ambassador
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    You can hold multiple funds (I’d avoid use of the word portfolio when referring to a single fund) in an ISA
    I’m a Senior Forum Ambassador and I support the Forum Team on the Pensions, Annuities & Retirement Planning, Loans
    & Credit Cards boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com.
    All views are my own and not the official line of MoneySavingExpert.
  • Yanling
    Yanling Posts: 124 Forumite
    100 Posts Third Anniversary
    MallyGirl wrote: »
    You can hold multiple funds (I’d avoid use of the word portfolio when referring to a single fund) in an ISA
    why? a bit more cost?
  • Yanling
    Yanling Posts: 124 Forumite
    100 Posts Third Anniversary
    Is it legal or Government allows me to invest Isa into two portfolios ( such as VLS and Fundsmith) up to Isa allowance?
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